Friday, 8 April 2011

Insolvency Statistics Show Improving Picture

The number of UK companies going into a formal insolvency process - administration, voluntary liquidation, CVA or were wound up by the Court fell by 12% in February 2011 compared to 2010, according to data from information services firm Experian.

The total number of insolvencies fell from 0.10% to 0.08% of businesses.

This is welcome news for the business community but the research did show that medium sized businesses were still becoming insolvent at the same rate month on month.

I don't wish to keep going on about how we will have more troubled times ahead but would like to congratulate small business owners for keeping costs under control and being flexible. HMRC and the banks have been more supportive than was the case in the early nineties. Banks have not lent out money that has led to businesses being starved of cash to grow, BUT some banks have not been calling the loans in and putting companies into administration with quite the same vigour as in the past. RBS for instance although the biggest bank (by debt volume) is responsible for the fewest administration appointments - 10% at last count by insolvency today magazine. Could it be something to do with it being mostly owned by the taxpayer...?

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